Gross mortgage lending ‘totals £16bn’

The Council of Mortgage Lenders (CML) has revealed that gross mortgage lending reached £16 billion in July.

Earlier this month, the organisation indicated that the slowdown in buy-to-let landlords getting mortgages advanced had declined - there were 21,600 advanced in the second quarter - suggesting there have been improvements in the overall home loan market.

CML figures showed that gross mortgage lending in July was 26 per cent up on June's £12.7 billion.

However, despite the optimism being shown in the overall market, lending is still significantly down on last year.

According to the council, although the latest data is "further evidence of a modest improvement in the market", lending totalled £24.9 billion in July 2008.

CML economist Paul Samter said: "The CML's July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals."